The company, Portland p.l.c. has five products in its range and is currently running the following sales/production programme:

This programme fully utilises the availability of labour and machine time.
A linear programme reveals that the labour and machine hours have a shadow price of Re 1 and Re 0.30 per hour.
Determine the optimal production programme from this information and compare the contribution earned with that of the existing programme

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Details Products A B C D E Sales in units 50,000 40,000 70,000 60,000 20,000 Per unit: Sales price (Rs) 3.50 3.00 4.50 5.00 2.00 Variable cost (Rs) 1.50 1.26 2.00 2.34 0.88 Labour hours 2.00 1.50 3.00 2.80 1.00 Machine hours 1.00 0.80 1.50 1.20 0.40